Frequently Asked Questions

Start by looking at three things: stable income, manageable debt, and some savings for a down payment and closing costs. A good rule of thumb is that your total monthly housing costs shouldn't exceed about 28–31% of your gross monthly income. Our team can run a quick pre-qualification to give you a clear picture of where you stand — no commitment, no pressure.

Pre-qualification is an informal estimate of what you might qualify for, based on self-reported financial information. Pre-approval is a more thorough process — a lender reviews your credit, income, assets, and debts to give you a conditional commitment for a specific loan amount. Pre-approval carries much more weight with sellers and real estate agents.

The industry average is 45–60 days from application to closing. The Grigg Team averages 28 days, with 87% of our loans closing on or ahead of schedule (based on internal Grigg Team production data; individual results vary). Timelines can vary depending on the complexity of the file, property type, and how quickly documentation is provided.

Typically you'll need: two years of W-2s or tax returns, recent pay stubs (30 days), two months of bank statements, a valid government-issued ID, and information about any existing debts. Self-employed borrowers may need additional documentation like profit & loss statements or 12–24 months of bank statements.

It depends on the loan type. FHA loans typically require a minimum score of 580 (or 500 with a 10% down payment). Conventional loans generally require 620 or higher. VA and USDA loans don't have a government-mandated minimum, but most lenders look for at least 620. Higher scores generally qualify for better interest rates.

When we pull your credit for a mortgage application, it's considered a "hard inquiry" and may lower your score by a few points temporarily. However, credit bureaus recognize that borrowers shop for rates — multiple mortgage inquiries within a 14–45 day window (depending on the scoring model) are typically treated as a single inquiry.

Absolutely. Self-employed borrowers have several options, including conventional loans (using tax returns), bank statement loans (using 12–24 months of deposits), and other non-QM programs. The key is documenting your income consistently. Our team works with self-employed borrowers regularly and knows how to structure these files.

Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. Lenders use this to gauge your ability to manage monthly payments. Most conventional loans cap DTI at 45–50%, while FHA allows up to 57% in some cases. Lower DTI generally means better rates and more options.

Conventional loans are not government-backed and typically require higher credit scores but offer competitive rates. FHA loans are insured by the Federal Housing Administration and allow lower credit and down payments. VA loans are guaranteed by the Department of Veterans Affairs with zero down payment for eligible veterans. USDA loans offer zero down payment for eligible properties in rural and suburban areas. Each has its own pros and cons depending on your situation.

Private Mortgage Insurance (PMI) is required on conventional loans when you put down less than 20%. It typically costs 0.5–1.5% of the loan amount annually, added to your monthly payment. You can avoid PMI by putting 20% down, choosing a VA loan (which doesn't require PMI), or exploring lender-paid mortgage insurance options. PMI on conventional loans can be removed once you reach 20% equity.

A fixed-rate mortgage keeps your interest rate (and principal + interest payment) the same for the life of the loan — great for stability and long-term homeowners. An adjustable-rate mortgage (ARM) starts with a lower rate for an initial fixed period (typically 5, 7, or 10 years), then adjusts periodically. After the fixed period, your interest rate and monthly payment may increase or decrease based on market conditions. ARMs can make sense if you plan to sell or refinance before the adjustment period begins.

A jumbo loan exceeds the conforming loan limits set by Fannie Mae and Freddie Mac (currently $766,550 in most areas, higher in designated high-cost areas). Jumbo loans typically require higher credit scores, larger down payments, and more reserves. They're commonly used for luxury properties or high-cost markets.

It depends on the loan type. Conventional loans require as little as 3% down. FHA loans require 3.5%. VA and USDA loans offer 0% down payment options for eligible borrowers. While 20% down eliminates PMI on conventional loans, most buyers put down far less. Down payment assistance programs may also be available in your area.

Closing costs are fees associated with finalizing your mortgage, including lender fees, title insurance, appraisal, attorney fees, and prepaid items (taxes and insurance). They typically range from 2–5% of the loan amount. On a $400,000 loan, expect roughly $8,000–$20,000. Some costs are negotiable, and in some cases, the seller may agree to cover a portion.

Yes. Many states and local municipalities offer down payment assistance programs — including grants, forgivable loans, and low-interest second mortgages. Some programs are income-based, while others are targeted at specific professions (teachers, first responders, healthcare workers). Our team can help you identify programs you may qualify for in your area.

At closing, you'll review and sign your final loan documents, including the Closing Disclosure, promissory note, and deed of trust. You'll also pay your closing costs and down payment (typically via wire transfer or cashier's check). Once everything is signed and funded, the title transfers and you receive the keys. The entire signing process usually takes about an hour.

Yes. A rate lock guarantees your interest rate for a set period (typically 30–60 days) while your loan is being processed. This protects you from rate increases during that time. If rates drop significantly after you lock, some programs offer a one-time "float down" option. Your loan officer can advise on the best time to lock based on current market conditions.

Refinancing can make sense when interest rates drop significantly below your current rate (generally 0.75–1% or more), when you want to shorten your loan term, or when you need to access equity (cash-out refinance). The key is to weigh the closing costs of refinancing against the monthly savings to determine your break-even point.

When you sell your home, the proceeds from the sale pay off your remaining mortgage balance at closing. If your home has appreciated, you keep the difference (equity) after paying off the loan and selling costs. If you have an FHA or VA loan, it may be assumable — meaning a qualified buyer could take over your existing loan terms.